SMART TRAFFIC
MANJIT MINHAS
Calgary changes daily commute
Q&A with 2017 CREB® Forecast keynote speaker
TRAFFIC A5
THE GARDEN GIFT POP THE QUESTION A4
BRINGING THE BEST OF THE SEASON INDOORS BALZER A6 FREE dec 16 to dec 22 2016 issue 06-49 editorial 403-781-1324 advertising 403-263-4940 crebnow@creb.ca
real estate news from industry experts
’TIS THE SEASON
Debt might be a fact of life this time of year, but experts warn of long-term impacts
‘‘
WHERE PEOPLE SOMETIMES MAKE A BIG MISTAKE IS THEY DON’T REALIZE HOW MUCH OF AN IMPACT THEIR DEBT HAS
MILES DURRIE for creb®now
W
JOE JACOBS
PRESIDENT OF MORTGAGE CONNECTION INC.
ship a reality means qualifying for a mortgage. That’s where your total debt service ratio — the potential principal, interest, taxes, condo fees (if any) and utilities on your dream home, plus all your monthly loan and credit payments, as a percentage of your gross income — is crucial. “Typically, lenders don’t want to see that go over 40 per cent,” said Scott Hannah, president and CEO
$436,200
$438,900
$440,400
$440,200
$440,000
$440,400
$439,700
$442,800
$445,000
$447,800
$452,800
$454,800
$457,400
$459,300
$459,300
$459,100
$459,300
$457,800
$456,700
$458,900
$460,900
$462,400
$461,700
MLS® BENCHMARK PRICE* NOV ‘14 – NOV ‘16
NOV14 DEC14 JAN15 FEB15 MAR15 APR15 MAY15 JUN15 JUL15 AUG15 SEP15 OCT15 NOV15 DEC15 JAN16 FEB16 MAR16 APR16 MAY16 JUN16 JUL16 AUG16 SEP16 OCT16 NOV16
$462,200
CITY OF CALGARY
of the non-profit Credit Counselling Society of Canada. It’s a simple concept: the more you owe, the less you can afford. “Credit is just a tool, and like all tools you have to learn how to operate it or bad things can happen,” Hannah said. “What is a real concern is the amount of consumer debt people are carrying in the form of credit cards and car loans.”
$441,000
ith the holiday shopping season shifting into high gear, many Calgarians will be reaching for their credit cards. But those decisions about taking on debt to put smiles on faces can be the unwelcome gift that keeps on giving, putting the squeeze on your ability to qualify for your first — or next — mortgage, say experts. “Where people sometimes make a big mistake is they don’t realize how much of an impact their debt has,” said mortgage broker Joe Jacobs, president of Mortgage Connection Inc. in Calgary. “If you have a monthly payment of $420 in your outside (non-mortgage) debts, that’s $75,000 worth of mortgage financing you can’t qualify for.” It’s a crunch many Canadians are facing. Total household debt is growing nationwide. The study Indebtedness of Canadian Households, published earlier this year by the Canada Mortgage & Housing Corp., (CMHC) shows the ratio of household debt to disposable income has almost doubled since 1990. And 89 per cent of that increase is secured by real estate in the form of mortgages and home equity lines of credit. There are two sides to that coin: owning a higher-priced home means more debt, but it also means higher net worth, the CMHC study points out. Yet achieving that increased net worth and making home owner-
*All statistics based on monthly data compiled by CREB® via MLS® activity. Includes detached, attached and apartment.
Jacobs adds unsecured lines of credit to that list, noting the monthly burden of a credit line is calculated at three per cent of the balance owing, even if your minimum payment is much less. So owing $15,000 on a line of credit is, on paper, a $450 monthly hit — “a real killer,” he said.
ADRIAN SHELLARD/FOR CREB®NOW
Joe Jacobs, president of Mortgage Connection Inc. in Calgary, said the best way to qualify for a mortgage is to decrease or eliminate other debts.
DEBT A3
ALBERTA TO MOVE OUT OF RECESSION IN ’17: REPORT CREB® STAFF
A
lberta is forecast to emerge from one of the worst recessions to hit the province in decades next year, albeit economic recovery is likely to be modest, according to the Conference Board of Canada. “It appears that the worst may be over for Alberta, but the road to recovery won’t be easy,” said Marie-Christine Bernard, associate director of the provincial forecast for the Conference Board of Canada.
RECESSION A3
CONTENTS NEWS BRIEFS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A3 MORTGAGE RATES. . . . . . . . . . . . . . . . . . . . . . . . . A4 WEEKLY FEED . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A6 POP THE QUESTION. . . . . . . . . . . . . . . . . . . . . . . . A7 Marissa Toohey, CHBA-UDI
ENVIRONMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A7 Multi-storey solar
MAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B1 OPEN HOUSES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B11 @crebnow
CREBNow
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HOT ROD HEAVEN
Home business? Car collector? Call Doug McKay (403)975-1776 Text city to 587-333-0281 for photos & more details.
www.RealEstateAdvocates.ca
dougmckay@shaw.ca
Real Estate Advocates
50’ x 29’ deep attached garage with infloor heat, 6 skylights, 1 -16 x 8’ and 2-10 x 8’ overhead doors, and running water. Plenty of room for your toys or home business here. The home is wide open with a greatroom with fireplace, a kitchen with updated applicances + eating area, and a family room that are open so you can keep an eye on everyone. Laundry on the main floor with lots of storage, also a large pantry and 2 piece bath on the main. The lower is developed with a den, a family room and lots of storage. There is roughed in plumbing for a bathroom where the desk is in the family room. Upstairs you have two bedrooms, a four piece bath and the master with a 4 piece ensuite. Lots of room for a swing set, rv storage on this oversized pie lot with rear lane. This original owner home has been well-maintained. MLS®C4090586